Taylor Morrison Home (TMHC) Q3 2025 earnings summary

Executive summary

• Delivered 3,324 home closings in Q3 2025, generating $2.0 billion in revenue at an average price of $602,000, with net income of $201 million ($2.01 per diluted share) and adjusted net income of $211 million ($2.11 per share).

• Gross margin was 22.1% (adjusted 22.4%), with SG&A leverage improving to 9.0% of home closings revenue, and strong liquidity of $1.3 billion maintained.

• Net sales orders declined 13% year-over-year to 2,468, with cancellations rising to 15.4% of gross orders and a monthly absorption pace of 2.4 per community.

• Continued focus on operational efficiency, digital innovation, and customer experience, with over 100 new communities planned for next year and ongoing share repurchases totaling 1.3 million shares ($75 million) in Q3.

• Celebrated 100,000 home closings since IPO and recognized as America's Most Trusted Builder for the 10th consecutive year.

Financial highlights

• Q3 2025 total revenue was $2.10 billion, down 1.2% year-over-year, with home closings revenue at $2.0 billion and gross margin at 22.1% (adjusted 22.4%).

• Adjusted net income was $210.9 million ($2.11 per share); EBITDA was $314 million, adjusted EBITDA $333 million.

• SG&A as a percentage of home closings revenue improved by 80 bps to 9.0%, with sales, commissions, and marketing costs at 5.8% and G&A at 3.2%.

• Book value per share increased 15% year-over-year to $61.95; return on equity was 14.3% on a trailing twelve-month basis.

• Net homebuilding debt to capitalization ratio was 21.3% at quarter-end, with $1.3 billion in liquidity and $955 million available on the credit facility.

Outlook and guidance

• Q4 2025 guidance: 3,100–3,300 home closings, average closing price ~$590,000, gross margin ~21.5%.

• Full-year 2025 guidance: 12,800–13,000 home closings, average closing price ~$595,000, gross margin ~22.5% (GAAP), ~23% (adjusted).

• SG&A as a percentage of home closings revenue expected in the mid-9% range; share repurchases to be at least $350 million.

• Homebuilding land and development spend projected at ~$2.3 billion for the year.

• Management expects continued pressure on sales pace and margins due to elevated mortgage rates and increased incentives.